IRCTC vs Cochin Shipyard: Which PSU Stock Has Higher Upside Potential? Sumeet Bagadia Answers

Tuesday saw a third straight day of gains for domestic benchmark indices, driven by gains in the global markets. The India VIX dropped 19.72% before closing at 10.20, suggesting low market volatility. At 22,368, the Nifty ended the day higher than it had started. The Nifty Bank index saw considerable profit-taking after opening with a gap upward and encountering a level of 48,300. Consequently, the index ended the day at 47,970, indicating a modest rise. Indian hotels, Dalmia Bharat, HUL, and Axis Bank were the key Q4 results to be announced on Wednesday. Along with the new home sales figure, investors will also be watching for US manufacturing and services data today which may trigger market sentiment.

Nifty Outlook

Rupak De, Senior Technical Analyst, LKP Securities said, "The Nifty remained sideways throughout the session as it failed to provide any directional breakout. However, the overall trend remains positive as the index closed above the critical moving average. The Relative Strength Index (RSI) is showing a bullish crossover with a reading below 60. On the higher end, the range of 22350-22400 is likely to act as a resistance zone; a decisive breakout above 22400 might trigger a rally in the market. On the lower end, support is positioned at 22250; a breach below this level might weaken the bullish sentiment."

Bank Nifty Outlook

Kunal Shah, Senior Technical & Derivative Analyst at LKP Securities said, "The Bank Nifty index experienced a sideways trading session following a positive opening, with bears asserting dominance at higher levels. Despite this, the overall sentiment remains bullish, suggesting that dips should be seen as buying opportunities. Strong support is observed around the 47800-47700 zone. However, the immediate hurdle lies at 48200-48500. A breakthrough above this resistance could pave the way for the index to achieve fresh all-time high levels."

Stocks To Buy Today

Sumeet Bagadia, executive director of Choice Broking, recommended buying two PSU stocks today. Which stock has a higher potential for upside? Let's compare.

IRCTC

Buy IRCTC in cash @ Rs 1016.30, stop-loss @ Rs 974, target @ Rs 1097

IRCTC is currently trading at Rs 1016.30, showing signs of a potential breakout from a rounding pattern retest at the breakout level on the daily chart. This breakout is accompanied by robust trading volume and supported by a bullish candlestick pattern, indicating strong upward momentum in the stock.

Furthermore, IRCTC is positioned above key Exponential Moving Averages (EMAs), including the 20-day, 50-day, 100-day, and 200-day EMAs. This alignment above crucial EMAs strengthens the bullish outlook, suggesting the potential for sustained upward price movement.

The Relative Strength Index (RSI) is presently at 58.9 and trending upwards, signaling an increase in buying momentum. Additionally, the Stochastic Relative Strength Index (Stoch RSI) has exhibited a positive crossover from the oversold region, further reinforcing the bullish sentiment. The confluence of these technical indicators indicates that IRCTC may have the potential to reach a target price of Rs 1097 in the near term.

For strategic entry, it is advisable to consider buying on dips, particularly near Rs 990. To effectively manage risk, implementing a stop-loss (SL) at Rs 974 is recommended. This precautionary measure is crucial to safeguard investments in the event of an unexpected market reversal.

In summary, based on the technical analysis and current market conditions, IRCTC presents an attractive buying opportunity for those targeting a Rs 1097 price target. However, it is important to implement prudent risk management measures to ensure a well-protected investment strategy.

Cochin Shipyard

Buy COCHINSHIP in cash @ Rs 1251.95, stop-loss @ Rs 1212, target @ Rs 1333

COCHINSHIP, which is presently trading at an all-time high of 1280 levels, is displaying significant bullish momentum. Strong trading volumes have backed the recent breakout above the critical resistance at 1150 levels, which is an important technical development that highlights the strength of the stock. The discovery raises the possibility that the upward trend would continue, providing investors with a positive outlook.

To further support its bullish outlook, COCHINSHIPis also trading above important moving averages, such as the short-term (20 Day), medium-term (50 Day), and long-term (200 Day) EMAs. Relative Strength Index (RSI), a momentum indicator, is currently at 75.04 points.

It is advisable for traders to monitor the strong support level around 1212 levels, as a breach of this level may indicate a change in market attitude. COCHINSHIP present technical configuration overall shows a favourable atmosphere for potential upside growth going forward, so long as traders and investors keep a careful eye on important support and resistance levels and are alert to any possible reversals.

We advise purchasing COCHINSHIP at the CMP of 1251.95 and a stop loss of 1212 in order to reach the target of 1333, based on the analysis above.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.